BDCs release over 2 million litres of fuel

Bulk Distribution Companies (BDCs) have released a week’s stock of petrol and diesel to the market to mitigate the acute shortage of petrol and diesel across the country.

The move is in response to the government’s release of GH¢450 million and $100 million to cover part of the debt it owed the BDCs.
In an interview with the Daily Graphic Friday, the Chief Executive Officer (CEO) of the Chamber of Bulk Oil Distributors (CBOD), Mr Senyo Hosi, confirmed the receipt of the amount by the BDCs.
“As we speak, I am at the Bank of Ghana processing the payment,” Mr Hosi disclosed and stated “we have since located the key that held one week’s stock under lock and key.”
International suppliers of petroleum products, early this week, put under “lock and key”, one week’s supply of petrol and diesel until BDCs honoured their debt obligation.
The BDCs on the other hand, were faced with financial problems because banks were unwilling to issue Letters of Credit (LCs) as a result of their huge indebtedness to the banks.
The situation resulted in a severe fuel shortage across the country. Long queues were sited at petrol dumps.
Some individuals took advantage of the situation and sold fuel for as much as GH¢50 per gallon.

First stock being released

To mitigate the situation, Mr Hosi said the BDCs were working around the clock to release petrol and diesel to the market.
“The first stock has been released from the Tema Tank Farm. More than two million litres have so far been discharged. We will work overtime today (Saturday) to ensure there is enough stock on the market,” Mr Hosi clarified.
Some banks, he explained had begun issuing LCs to cater for the importation of more petrol and diesel.
He explained that the financial hold on most supplies would be fully lifted by international suppliers as the banks issued the LCs.
“Letters of Credit are being issued for new imports. We expect the situation to normalise by Tuesday,” Mr Hosi assured.

 Gratitude to President

“The Chamber and its membership wish to express their sincere gratitude to the President, the Chief of Staff as well as the Deputy Governor of the Bank of Ghana for their leadership and personal involvement in resolving the crisis,” Mr Hosi noted.
The payment, he explained would restore “funding confidence” in the industry.

Avoid Panic Buying

Pleading with motorists to avoid panic buying, Mr Hosi disclosed that the BDCs were working around the clock with stakeholders to ensure the situation normalised.
He expressed “the hope the events that led to this occurrence would be avoided in future.”
“We wish to reaffirm our commitment to our obligation to tirelessly and continuously work to maintain consistent supply of petroleum products to the market,” Mr Hosi added, and reiterated his position that subsidies on petroleum products should be scrapped as a matter of urgency.

Audit of Debt

Meanwhile, the government has tasked international audit firm, Ernst and Young to conduct an audit into the GH¢1.8 billion, being subsidies on petrol and diesel from the period of July 2011 to date.